New York wants bankers paid better

This is why George Osborne isn't whining about bank bonuses:

The amount of money Wall Street sends to Albany [New York state capital] (in personal and business income taxes and capital gains) declined from more than $12 billion in 2008 to less than $9 billion last year, and is almost certain to fall again, given last week's bonuses. In percentage terms, the Street used to account for 21% of all state revenue; today, the number is 13% and sliding.
If you pressure banks to cut bonuses, that will show up in your city / state / national accounts as a corresponding decrease in tax revenue. And for a state (New York) or country (London) heavily dependent on financial services revenue, that is not something that's going to be easy to swallow.

No comments:

Post a Comment

All comments are subject to retrospective moderation. I will only reject spam, gratuitous abuse, and wilful stupidity.